A manufacturing company has prepared the operating budget and the cash budget and is now preparing the budgeted balance sheet.While doing so,the Cash balance can be taken from the ________.
A) operational budget
B) budgeted income statement
C) cash budget
D) sales budget

Question

Quizplus · Accepted Answer

The Cash balance can be taken from the cash budget, as this budget shows the expected cash inflows and outflows and the resulting ending cash balance. The operating budget and sales budget show expected revenues and expenses, while the budgeted income statement shows the expected net income. These budgets do not specifically provide information on the cash balance.

A Manufacturing Company Has Prepared the Operating Budget and the Cash